The frustration is building among prospective home buyers in Austin as inventory levels tighten and competition for single family homes intensifies. Austin’s growing housing shortage is starting to wear thin on the emotions of budding home owners.
Austin is a Seller’s Market
According to the Texas A&M Real Estate Center, a market with a balanced supply and demand is about 6.5 months of inventory. In other words, given the current rate of sale a balanced market will sell-off all homes for sale in 6.5 months assuming no new inventory. In September 2012 Austin’s inventory measured 3.7 months effectively tapping out our market. Vacant houses depress neighborhood home values and discourage new construction. When new home construction exceeds the demand for people buying, prices drop, halting new construction and foreclosures and leads to more vacancies.
Multiple Offers Drive Home Values Higher
Austin was not hit as hard as the rest of the country by the mortgage market burst, so the spike in demand has had a more powerful rebound effect on values. Competitive bidding has become more commonplace, especially in the most highly desirable areas. Finding the deal of the century in Austin is no longer realistic, no matter what the national media opines. According to Community Impact Newspaper, the Census Bureau reported that Austin is the 2nd fastest growing metropolitan area in the country. Between July 2011 and April 2012, Austin gained 70,000 new residents, and Forbes ranked Austin #1 in its Best Cities for Jobs. Population growth coupled with strong employment opportunities has further reduced the vacancy rate in Austin.
Austin Vacancy Rates Dip
The decline in vacancy rates is a key indicator of a housing recovery – good news for home owners who are rooting for rising home values, but bad news for would be home buyers and renters facing the challenge of finding somewhere to live.
Tip for Sellers: Find a Home First
For sellers, our advice is simple: Find the right home first and then put your home on the market. With low interest rates, a more confident home buying public the challenge for most home owners is not selling their home – it is finding the right home at an affordable price. For more info about our unique Home Selling System designed to sell your home faster and for more money, check out our Austin Home Sellers page.
Buying a Home in this Market?
Be ready to act quickly. We can set you up on an email search so you can be alerted as soon as a home comes on the market. Once it does, go out and view the property in person as soon as possible. Sometimes being there first can help your chances of successfully winning the bid. For more tips and tricks and to learn how we’ve helped hundreds of buyers over the years, check out our Austin Home Buyers page.